A prolonged war in Iraq could hinder the rebound in capital markets which the insurance industry is counting on to lift it from its recent slump. That's according to several leading reinsurers.
A prolonged war in Iraq could hinder the rebound in capital markets, which the insurance industry is counting on to lift it from its recent slump. That's according to several leading reinsurers.
Insurers fear a long, drawn-out war could drag down investments, on which insurers rely for their profits.
Industry executives attending an industry conference in Dublin said that with $250bn (£160bn) having been wiped off the industry's balance sheet in the past three years, insurers need a period of stability.
Executives told Reuters that capital markets could be poised for a rebound that would benefit insurers - but only if the war is a short one, executives said.
Clem Booth, head of strategy for Munich Re said: "I'd agree that the markets have largely discounted the effect of the war, that's not really the danger.
"It's a high-risk endeavour, it could go wrong, let's not forget that. Wars have two sides and if this is not short and sharp there could be some risks associated to that."
